How long will the current taconite boom last? Even with foreign investment, the U.S. share of global iron mining is slipping. In 1995, the United States produced 62 million long tons of usable iron ore and was the fifth-largest producer in the world, with 6.2 percent of the world’s total production of 1 billion long tons. Back then, the United States followed China, Brazil, Australia, and Russia.
By 2005, the United States’ position had slipped to seven, with only 54 million long tons, or 3.5 percent of total world output of 1.54 billion long tons. China remained number one, followed by Brazil, Australia, India, Russia, and Ukraine. Estimates for 2006 production show that the United States is likely to remain the seventh-largest producer of iron ore, but its share of the global market will slip to 3.2 percent.
Kakela and others don’t think that the recent influx of overseas ownership is the end of foreign investment in Iron Range mines. They don’t believe foreign companies will eventually own all of Minnesota’s iron ore, although they do say it is possible.
The push toward vertical integration is nothing new, they say. Ford Motor Company once owned part of the mine now known as United Taconite in an effort to control vehicle-manufacturing costs. At that time, Ford’s pit was called the “Thunderbird Mine” and its plant the “Fairlane Plant.” Perhaps some day, Iron Rangers will see a “Prius Mine” or a “Kio Rio Plant” near Hibbing or Virginia. That sort of thing is becoming the way of the world.
